The owners of a trendy Sydney restaurant blamed Uber Eats and high rewards for being forced to close their doors with huge debts just three months after they went into business.
Kyle Stagoll and Dave Nelson opened Sash – a pizza-sushi fusion restaurant – in Surry Hills earlier this year after the success of their first eatery in Melbourne.
But within a few months the two partners went into liquidation, which was $ 435,776.11 due to 33 different companies in Victoria, New South Wales and Queensland.
Mr. Stagoll claims that an important factor behind the failure of Sash was to pay employees at the grant percentage.
Dave Nelson (left) and Kyle Stagoll (right) were forced to close their restaurant Sash due to debts totaling nearly $ 440,000. Mr. Stagoll caused outrage at the weekend when he blamed the failure of his company because he had to pay his employees the full wage and the rise of Uber Eats
Some of the creditors owed by Mr. Nelson and Mr. Stagoll (photo) claim that the young restaurant owners gave priority to & # 39; partying instead of paying & # 39;
He told The Sydney Morning Herald it was incredibly difficult to pay employees the required wages and also to make a profit.
Stagoll even claimed that employees in the hospitality sector & # 39; drastically & # 39; had paid too much compared to their value for the restaurants, pubs and bars where they work.
& # 39; Most of our competitors who have been successful in recent years have paid staff below the awarded price, it seems to be the only way locations can stay ahead, & # 39; he said.
& # 39; Does this mean that hospo employees are drastically overpaid for the value they produce for a company? Probably. & # 39;
However, some creditors who he and Mr. Nelson left out of their pockets said they both seemed to give priority to a lavish lifestyle rather than paying back the money owed.
& # 39; When he went into the administration, I saw him coming, the writing was on the wall long ago & # 39 ;, an account director told Daily Mail Australia.
& # 39; We've only had them since February when they set it up … (but) we constantly had to follow the payment.
& # 39; I remember that with these guys you would hear a lot about big parties and how to make them come true, which is typical of this generation.
& # 39; This generation thinks they can run a business and earn all those big dollars, but it's hard work in the hospitality industry. & # 39;
Among those who get caught up in the restaurant's failure is PR Queen Roxy Jacenko, who, according to ASIC records, owes $ 11,500.
& # 39; It's always someone else's fault, not when you don't pay your bills – it's never yours & # 39 ;, said PR Queen Roxy Jacenko (photo), who owes $ 11,500 to Mr. Nelson and Mr. Stagoll.
In the wake of the storm caused by his partner's comments, Nelson (photo) told Daily Mail Australia that wages were a contributing factor, but the biggest problem was entering the Sydney market at the wrong time
Mrs. Jacenko said she was not surprised that the two men wanted to point to the others in the aftermath of their bankruptcy.
& # 39; It's always someone else's fault, not if you don't pay your bills – it's never your own, & # 39; she said.
When they were not partying in their restaurant, Mr. Stagoll and Nelson were often present at events in the eastern suburbs of Sydney – a haven for Instagram models.
But the two denied that they had been irresponsible in their management, and Mr. Nelson claimed that they were paralyzed by long delays causing them to bleed & # 39; cash & # 39 ;.
& # 39; There are 101 reasons why I can explain why the restaurant failed, but the real reason why we collapsed was that we signed the lease in 2017 & # 39 ;, he told Daily Mail Australia.
& # 39; We paid the builder, did the finances and the market was hot in 2017, but we were 18 months late and by the time we launched in 2019 we knew our back was against the wall, but we thought with a big launch party that we can make it possible.
& # 39; But we just borrowed too much … and in this market it just wasn't sustainable. & # 39;
Mr Stagoll's claims in The Sydney Morning Herald about having to pay award wages led to outrage on social media (photo), particularly in the aftermath of the George Calombaris scandal
Mr Stagoll's claims came in the aftermath of controversy around top chef George Calombaris, who was caught underpaying his employees with $ 7.83 million.
Although it did not impress many on social media – including former federal senator Sam Dastyari – Mr. Nelson said his partner's comments had been taken out of context.
& # 39; I think it was meant that by the time you pay all your fines, Sunday rates and after 10:00 pm (rates), with a slow market it is very difficult to keep your pay below 40 percent (from your total business expenses), & # 39;
& # 39; Other industries just don't stop that. Wrestling and catering events are their biggest expense.
& # 39; The food has gone up, the rent has gone up, the electricity has gone through the red, everything has gone up and people want to cut back and as we have seen in the media, some big boys have decided to take the risk & # 39;
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